subject: Financial Knowledge Is A Must Have Personal Skill [print this page] Are you a numbers person? If not, you should be. That's not to say that you need to agree things like sine and cosine. It doesn't mean you need to be able to tell a quadratic equation from a binary. Nor does it mean you should be able to recall the exact amount of degrees that can be found in a triangle. No, you never need any of those skill sets to be a true "numbers person." But you do need to "be" a number person, at least if you are running your own business. So what does it mean to be a numbers person? It means that you are able to use what you agree about them and apply to a financial context. Having financial knowledge is the key to success, especially in a struggling economy. But how do you looking there, and how do you use it to the best of your abilities?
It starts with two numbers that you certainly need to know: revenue and expenses. Everyone is always trying to discover ways of boosting revenues without realizing what it costs them in the process. This mindset can be seen in the government's misguided idea that a stimulus plan would save the US economy. So far, all the billions of dollars doled out in the stimulus package of 2008 and 2009 did was anger constituents and prolong businesses that were destined for failure. Instead of finding ways, or rather forcing businesses of finding ways, to cut expenses and maximize profitablity, the government threw money at the trouble, and watched it fritter away because it was being handled by the same people, who got their companies in a mess to begin with.
Never let this be you. If you are running a small business or an internet business, then you need to discover ways of cutting expenses. Make it the first and foremost thing that you do. But make sure, at the same time, that you are not cutting just any expense. Target areas that are not profitable and actually detract from the areas that are. Once you do so, you can enjoy greater profits than before and actually make the recession of today, and the ones to come, work to your benefit.
But while you are finding ways to cut expenses, you also need to discover ways of creating more, as long as those expenses generate additional revenue. by using it all, make sure that your revenue exceeds your expenses. That's the kind of "numbers person" that you need to be, and it's what your business needs as well. So as you set out into a changing economy, realize that dire economic conditions do not need to need dire results for your company.
by: Gen Wright
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